§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry what steps are being taken to address the funding gap between public sector support for research and private sector investment in development. [152052]
§ Ms HewittBy 2005–06 the science budget will reach just short of £3 billion, more than double the figure for 1997–8. Moreover, the Chancellor announced in his speech on 26 January that we will make a long term plan for science funding over the next decade a central feature of our 2004 spending review. These demonstrate the Government's strong commitment to an excellent science base.
We are pressing forward on a number of fronts to address the funding gap between research and commercial exploitation. Direct support to universities and public sector research establishments (PSREs) is being provided in the form of proof of concept and seed corn funding through programmes such as University Challenge, the second round of the Higher Education Innovation Fund (HEIF) and the Public Sector Research Exploitation fund. In addition the Government is building up the capability of the research community to interact with business and investors. The recent Lambert Review of business /HEI interaction found that this investment is already succeeding.
R&D tax credits provide an incentive for companies to undertake R&D, both when work is subcontracted to higher education institutions or public sector research bodies and when work is done by the company itself.
The Government's Innovation Report (published in December 2003), describes how the DTI will develop a Technology Strategy with business, the SET base, other Government Departments, RDAs, and other stakeholders to identify key technologies with future growth potential. DTI will provide some of the funding and share some of the risks of pulling through technologies in these key areas into the market. In addition, the Research Councils will make plans for increasing the rate of knowledge transfer and interaction with business.
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